Sep 10, 2013, 08.08 PM | Source:

Nifty up 555 pts in 4 days; rupee, exports data, Syria aid

Short covering, banking & rupee measures by new RBI governor Raghuram Rajan and receding Syria concerns pushed the Sensex and Nifty higher by 1762.44 points and 555.3 points in four consecutive sessions.

Moneycontrol Bureau

The Sensex hit psychological 20000-mark while the Nifty too was not left behind as it touched the 5900 level Tuesday on appreciation in rupee, strong exports data and TRAI recommendations for telecom. Globally, better-than-expected Chinese data and waning of geopolitical risks from Syria lifted investors’ sentiment.

The Sensex gained 727.04 points or 3.77 percent to close at 19997.10, after hitting an intraday high of 20012.69.

The Nifty touched day's high of 5904.85, before ending with gains of 216.35 points or 3.81 percent at 5896.75.

Short covering, banking and rupee measures by new RBI governor Raghuram Rajan and receding Syria concerns pushed the Sensex and Nifty higher by 1762.44 points and 555.3 points in four consecutive sessions.

The uptrend seem to have changed sentiments a bit as some experts believe the worst is over for the market.

Ratnesh Kumar, MD and CEO, Standard Chartered Securities believes the worst for India is over atleast in certain aspects like the current account deficit (CAD). According to him, the market is on steadier ground after the better-than-expected July CAD figure and is likely to remain so until the September 17 Fed meet.

Meanwhile, Sandeep Shenoy of Anand Rathi Financial Services Shenoy is hopeful that the current rally seen in the market may take it to higher levels, but adds that the market is still not out of woods. He advises to trade cautiously.

Shenoy sees the market hovering in the broad range of 5,600-6,000 for the next two-three months given the lack of positive cues.

The rupee appreciated by 140 paise to close at 63.84 against the US dollar - highest closing level since August 23. The currency gained 380 paise in four straight sessions.

Inflow of foreign money was the real supportive factor today as foreign institutional investors have bought more than Rs 2,500 crore worth of shares, as per provisional data available on exchange's website. In four sessions, they purchased around Rs 4,500 crore worth of equity shares.

The next trigger for the market is likely to be FOMC meet on September 17. Even Raghuram Rajan's maiden RBI monetary policy on September 20 will be closely watched by investors.

Trade deficit of the country in August narrowed to USD 10.91 billion from USD 12.27 billion in previous month, supported by double digit increase in exports.

Exports rose by 12 percent to USD 26.14 billion in August from a year ago period of USD 25.83 billion while imports declined to USD 37.05 billion from USD 38.10 billion Y-o-Y.

Stock specifically, auto, capital goods and FMCG shares were major gainers today as these sectoral indices rallied 5-6 percent. Tata Motors was the biggest gainer with 10 percent gains after its UK subsidiary Jaguar Land Rover reported record sales performance in August.

Larsen & Toubro surged 7 percent as Goldman Sachs added the stock to its conviction buy list.

Both FMCG majors ITC and Hindustan Unilever gained 6 percent each while top telecom operator Bharti Airtel soared 8 percent after the telecom regulator recommended steep cuts in reserve prices for the next round of spectrum auctions.

Among others, HDFC, Infosys, HDFC Bank, M&M, Sesa Goa and Hero MotoCorp advanced 3.5-7 percent.

However, Dr Reddys Labs was the only loser in the Sensex, falling 0.76 percent. SBI and TCS closed flat with negative bias.

On the global front, European markets were trading one percent higher after Monday's comments from US President Barack Obama that Russia's plan to put Syrian chemical weapons under international control could be a breakthrough in the crisis, reported Reuters.

Asian markets ended at a 3-month high with the Shanghai, Nikkei and Hang Seng gaining 1-1.5 percent.

Trade deficit shrinks in August. Trade deficit in August dropped to USD 10.91 billion from USD 12.27 billion in previous month. Imports declined to USD 37.05 billion from USD 38.10 billion while exports increased to USD 26.14 billion from USD 25.83 billion during the same period.

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The Sensex is up 658.92 points or 3.42 percent at 19928.98, and the Nifty is up 190.95 points or 3.36 percent at 5871.35. More than two shares advanced for every share declining on the Bombay Stock Exchange.

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The rupee sees a sharp upmove, tracking the euro and other Asia currencies as fears of an imminent US attack on Syria ease. Expectations that India’s trade deficit could narrow further in August also boosting the currency.

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It is a strong day for the equity market as well as currency, supported by positive global cues. The Sensex is up 516 points or 2.68 percent at 19786.06, and the Nifty is up 159.20 points or 2.80 percent at 5839.60.

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The Sensex jumps 534.04 points or 2.77 percent at 19804.10, and the Nifty is up 162.95 points or 2.87 percemt at 5843.35. About 1263 shares have advanced, 519 shares declined, and 114 shares are unchanged.

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Rakesh Arora of Macquarie says that the market appears to be tightly anchored to RBI's September 20 midquarter review, like it was to the Union Budget earlier this year, but is likely to be disappointed.

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The Indian rupee opened higher by 85 paise at 64.39 per dollar versus 65.24 Friday. Mohan Shenoi, Kotak Mahindra Bank said, "EM currencies have seen gains against the dollar.

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